EUR/USD Fundamental Analysis June 4, 2014 Forecast

Analysis and Recommendations:

The EUR/USD broke below the 1.36 range to trade at 1.3597 down a few pips today on mixed Eurozone data ahead of the ECB meeting on Thursday. The US dollar climbed to trade at 80.68 touching a recent high. Data today showed a drop in unemployment as expected but also a continued drop in CPI which will push the ECB to action.

There was a little bit of excitement in the markets on Monday due to a mistake from the Institute for Supply Management. The ISM – considered the leading authority on American manufacturing activity – initially announced that factory output slowed from 54.9 to 53.2 during May. The soft figure was especially surprising seeing as rival data group, Markit Economics, released a report detailing that manufacturing output rose to a 3-month high of 56.4 last month.

Despite the unexpectedly weak ISM figure, the US dollar remained fairly flat throughout the afternoon and a few hours later the ISM revealed that a “software error” had caused the wrong seasonal adjustment calculations to be applied to the figure. The corrected print showed that manufacturing activity actually rose to a 5-month high of 56.0 last month.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

Economic Data June 3, 2014 actual v. forecast

 

Upcoming Economic Events that affect the EUR, GBP and USD

Government Bond Auction

Date Time Country 

Jun 04 09:03 Sweden

Jun 04 09:30 Germany

Jun 04 10:00 Norway

Jun 05 00:30 Japan

Jun 05 08:30 Spain

Jun 05 08:50 France

Jun 05 13:20 Sweden

Jun 06 15:30 Italy